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On the evening of Tuesday November 4th, 2008 Barack Obama was elected president

08/14/2009

Along with that election came the new administration's policies and Wall Street's interpretation of the effect of those policies on risky assets. Wednesday, November 5th was the market's first opportunity to "price in" those policies. The open that morning for the Dow Industrials was 9616.60, modestly lower from the previous day's 9625.28 closing price. The market greeted the first day of a confirmed Obama presidency with a dramatic sell to a 9139.27 close. The Dow has failed to recover from that day's selloff since.

We are now approaching the "Obama Resistance" with the Dow trading 9400ish. It would be an excellent indication of the strength, and validity, of this rally to elevate above 9625. The market strength will finally overwhelm Wall Street's fears about the new administration's policies. A true referendum on the market and, in some sense,Wall Street's comfort with the new administration.

Past performance is not a guarantee of future results.

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.